Betting giant Flutter overhauls management at US FanDuel unit
Tweet
Share
E-mail
Fanduel and Flutter logos are seen in this illustration taken June 17, 2024. REUTERS/Dado Ruvic/Illustration
DUBLIN, May 6 (Reuters) - Betting giant Flutter made major management changes at its U.S. FanDuel brand on Wednesday, saying FanDuel CEO Amy Howe had left the company and that Flutter veteran Dan Taylor would oversee the U.S. business in a new, beefed-up role.
The changes come a little over two months since Flutter surprised analysts by forecasting 2026 core profit growth of 4% compared to growth of over 20% in each of the previous four years, citing challenges in the U.S. market, where FanDuel has a leading 39% share.
"It's no secret that FanDuel has underperformed, but looking forward, we've got to get the right team in place to support the business," CEO Peter Jackson told Reuters.
Jackson said the decision to leave was not Howe’s.
The world's largest online betting company nudged its full-year forecast growth down to just 1% on Wednesday, although its first quarter profit came in ahead of expectations.
Taylor, who is currently CEO of Flutter's international unit that includes established brands such as Paddy Power, Betfair and Sportsbet, will assume the newly created role of President of Flutter Entertainment, taking on oversight of the FanDuel business in addition to his existing responsibilities.
Christian Genetski, currently president of FanDuel, will assume leadership of the FanDuel business following Howe's exit. Howe became CEO in 2021 as a boom in U.S. sports betting took off following a lifting of a ban there in 2018.
Jackson said in the company's results announcement that he had been reflecting for some time on how to ensure the company remained agile in the key U.S. market and that the changes will ensure the right structure is in place to do so.
Flutter's first-quarter EBITDA of $631 million, up 2.4% year-on-year, was above the $614 million expected by analysts, despite it reporting that the marketwide trends that hurt U.S. trading in the fourth quarter continued to the end of March.
It lowered its full-year adjusted EBITDA forecast to $2.87 billion from $2.97 billion in February, citing further unfavorable sports results and the costs associated with an earlier than expected launch of FanDuel in Arkansas.
Analysts had pared their forecast back to $2.9 billion before Wednesday's update from the $3.5 billion seen earlier this year.
Flutter added that it continued to see only a limited cannibalization impact on sports betting from the rapid growth of prediction markets in the U.S.
(Reporting by Graham Fahy and Padraic Halpin; Editing by Chizu Nomiyama and Daniel Wallis)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Trump caps summer of US 250th birthday with auto race through Washington
- Germany's Merz to press cabinet for faster pro-growth reforms
- Vietnam approves customs law changes to strengthen IP enforcement
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
